The average house prices in the UK saw a modest increase of £200 in March, marking a 0.1% uptick. This rise, however, paled in comparison to February's £1,450 surge, signaling a slight slowdown in the market's momentum.
Regional dynamics played a significant role in shaping these trends. In February 2024, a majority of Unitary Authority areas experienced price hikes, with notable increases in places like Rutland, where prices soared by 11.3%. Bath and North East Somerset also witnessed robust growth, buoyed by the sale of premium properties like a 7-bedroom home in Bloomfield Park.
Looking at the broader picture, a comparison of annual rates of change among five index providers revealed a mixed landscape. While Nationwide reported a robust +1.6% increase in prices, e.surv Acadata depicted a contrasting picture with a -3.1% decline.
These variations underscore the complexity of the housing market, influenced by factors ranging from regional demand to broader economic conditions. As buyers and sellers navigate these fluctuations, the coming months may offer further insights into the resilience and dynamics of the UK housing sector.
Richard Sexton, Director at e.surv, comments:
“Our analysis this month shows that the average sale price of completed home transactions using cash and/or mortgages rose by just over £200 - or 0.1% - to £361,368, and is now at a level first seen in February 2022. It is also evident that the average price has hovered around the £361,000 mark for the last four months.
“While the movement is muted when we look at March’s performance, there are reports of a market in slow recovery. Certainly the balance of purchase against re-financing appears to be changing.
“Our view is that the modest turn in fortune is in large part a result of solid wage growth and a belief that interest rates will ease over the coming months, and this is underpinning growing confidence. The chronic undersupply continues to support prices but there are now more products available to buyers than there have been for some months.
“Ultimately affordability pressures are expected to ease but buyers cannot afford to throw caution to the wind.
“Looking forward, we saw little to no help for the housing market in March’s budget, but in advance of a possible winter General Election, we may see another “fiscal” event that may give some further impetus to home buyers.”
